Convention on Supplementary Compensation (CSC)

Why in News ? A French private company and the Nuclear Power Corporation of India (NPCIL) are addressing challenges related to the construction of six nuclear power reactors in Jaitapur, Maharashtra.

Relevance : Pre & Mains

Prelims: NPCIL/CLNDA/CSC

Mains :  GS 3

Understanding Nuclear Liability Legislation:

• Nuclear liability laws ensure compensation for victims of nuclear damage caused by incidents or disasters. The international framework for nuclear liability was strengthened post the 1986 Chernobyl disaster and includes several treaties.
• The Convention on Supplementary Compensation (CSC), adopted in 1997, aims to establish a minimum national compensation amount. India signed the CSC and ratified it in 2016.
• To align with international standards, India enacted the Civil Liability for Nuclear Damage Act (CLNDA) in 2010.
• The Vienna Convention on Civil Liability for Nuclear Damage sets minimum standards to provide financial protection for damages from peaceful nuclear energy uses.

Key Features of CLNDA 2010:

• Prompt Compensation: Facilitates a swift compensation process for victims of nuclear incidents.
• Absolute and No-Fault Liability: Holds the operator liable for damages regardless of fault.
• Right of Recourse: Allows the operator to seek recourse if the incident results from a supplier’s or their employee’s actions.
• Supplier Liability: Introduces liability for suppliers for defective equipment, materials, or substandard services.
• Compensation Amount: Sets a minimum compensation of Rs 1,500 crore, covered by insurance or financial security.
• Excess Compensation: Provides Rs 2,100 to Rs 2,300 crore for damages exceeding Rs 1,500 crore.
• Nuclear Reactors in India: India operates 22 nuclear reactors, all managed by the state-owned Nuclear Power Corporation of India Limited (NPCIL).

Current Challenges;

• Unique Supplier Liability: CLNDA is distinctive in holding suppliers accountable for damages, creating concerns.
• Insurance Ambiguity: Uncertainty over the amount of insurance required for damage claims worries suppliers.
• Criminal Liability: The provision for pursuing criminal liability deters many companies from building reactors in India.
• Undefined Nuclear Damages: The lack of a clear definition of nuclear damages creates confusion.
• Operator vs. Supplier Fault: Suppliers can be held liable even for damages caused by operator errors during equipment repairs.

Key Information:

 About the Nuclear Power Corporation of India Limited (NPCIL):

• A Public Sector Enterprise under the Department of Atomic Energy (DAE).
• Responsible for the design, construction, commissioning, and operation of nuclear power reactors.
• Holds equity in BHAVINI, another DAE public sector unit implementing the Fast Breeder Reactors program.
• Operates 22 commercial nuclear reactors with a total installed capacity of 6,780 MW.